Research On The Effect Of Rural Residents' Income On Consumption Structure In Chongqing

At present,China's economy is being in the period of transition from investment to a more consumption-led model.To expand domestic demand and to foster a new pattern which economic growth is driven jointly by consumption,investment and export have been the basic and long-term strategy for china's economic growth.economic growth requires that not only the growth of consumption,but also optimization of consumption structure.Therefore,Diving deep into resident's consumption structure,knowing accurately the current situation of rural residents' consumption structure,exploring the effect of rural residents' income on consumption structure,have been very important to expand domestic demand,and to foster a new pattern of economic growth which is driven jointly by consumption,investment and export,and to provide powerful support and durable pulling power.Great achievements have been made in the study on residents' consumption structure,but previous studies mainly takes all rural residents as a whole,which neglect the difference of income level among rural residents.In fact,in light of heterogeneous nature of rural residents,it is sensible to investigate the difference among farmers in different income levels.As level of income raises,rural residents' consumption patterns tends to optimize.To analysis the effect of rural residents' income on consumption structure helps us to understand correctly the rule of rural residents' consumption as well as complements and perfects consumption theory.This study dealt with the character of rural household's consumption structure in Chongqing and made analysis on the effect of rural residents' income on consumption structure.Under the new situation of Chongqing's economic restructuring,based on foreign and domestic studies,after theoretical arrangement and paper review,I put forward main propositions.Then,in order to empirically test propositions,this paper makes statistical analysis and empirical test on selecting the relevant data from Chongqing Statistical Yearbook(2005-2016).Specifically,the main contents are made up of the following:(1)make a summary of consumption theory,then put forward proposition,empirical test model and statistics needed based on classical consumption theory.(2)Use rural residents' income and consumption data in Chongqing from 2004 to 2015 to make computational analysis,which aims to discovery character and changing patterns of rural residents' consumption structure in Chongqing.Make statistical analysis on income structure and change of income.Then analyze the factors that affect level on rural residents' income.(3)Empirically tests how rural per-capita net income affect consumption and how the level of income inequality affects rural residents' consumption structure.The result prove that:(1)During 2004 to 2015,the living type consumption witnessed a downward trend,while development and enjoyment of consumption increased,which proves that rural resident's consumption structure in Chongqing is in the process of optimization.Also,rural per-capita net income has significant impact on farmers' living consumption.During 2004-2015,income structure of rural residents in Chongqing changed very substantially.Though the proposition of household production income declined,household production income is still the most important sources of rural residents' income.At the same time,the wages contributed a lot in the process of raising the farmers' income.The main factor that affects level of income of farmers are natural environment,human capital,urbanization,agriculture production cost and structure of agricultural production.(2)At present,rural residents' consumption behavior is accord with absolute income theory proposed by Keynes.As level of income raises,Marginal propensity to consume drops.MPC of rural residents in Chongqing is up to 0.61,this phenomenon shows that rural residents have strong consumer demand,which means as their income increases,they tend to spend most of income to consume.So to give more benefits to farmers,especially poor one will increase living consumption immensely.(3)The difference of income level has a significant influence on consumption of food,clothing,garments,household facilities,articles and services,educational,cultural and recreational services,medicine and medical service.Also,the difference of income level is without influence on consumption of transport,post and communication services.(4)As income level raises,living type consume in consumption in the proportion drops,while development and enjoyment consumption in consumption in the proportion increases,which shows that the level of income is important in optimization of rural residents' consumption structure.Finally,this paper put forward some recommendations based on the research result:(1)Broaden income sources and help farmers increase their income.(2)Improve consumption environment and provide guidance on reasonable consumption.(3)Take targeted measures in poverty alleviation and take powerful measure to control farmers' income difference.